Evidence to support the Ricardo-Barro effect would show that
A) government budget deficits have no effect on the real interest rate or investment.
B) higher government budget surpluses decrease investment.
C) higher government budget deficits decrease investment.
D) higher government budget deficits raise the real interest rate.
E) government budget deficits increase household consumption.
A
Economics
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A probable outcome of a decrease in aggregate demand and the subsequent cutback in production is
a. frictional unemployment b. cyclical unemployment c. cost-push unemployment d. structural unemployment e. transitory unemployment
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A bank is in the position to make loans when required reserves
A. are less than actual reserves. B. are greater than actual reserves. C. equal actual reserves. D. equal excess reserves.
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